1.1.2 The Market Flashcards
What are economies of scale?
Factors which cause costs to fall when a firm operates at a higher level of production.
What is a franchise?
A business that sells the rights to the use of its name and trading methods to local businesses.
What are generic brands?
Brands that are so well known that customers say the brand when they mean the product. E.g. I’ll Hoover the floor.
What is product differentiation?
The extent to which the consumers perceive your brand as being different from others.
What is a market?
The market is where buyers meet sellers, either face-to-face or online
What is a niche market?
A smaller specialised market, usually within a large market or industry.
What is a mass market?
A very large market in which products with mass appeal are targeted.
